Saudi Arabia and the UAE remain MENA's primary investment hubs in 2025

Seven months into 2025, Middle East and North Africa (MENA) startup funding has already surpassed the full-year total for 2024. The combination of some blockbuster rounds that produced two unicorns in one month, joined by surprise breakouts from unlikely countries, shows capital is spreading beyond the usual hubs.

Even so, the biggest pull remains where it has been for years. If you want to know who has the most pull in MENA’s startup ecosystem, just follow the money. In July, the trail led straight to Saudi Arabia, the UAE, and two mega deals so large they accounted for more than half of all capital raised. The result was one of the most concentrated bursts of funding the region has seen, pushing the monthly total to an eye-catching $783 million.

This surge was dramatic, marking a funding jump of 1,411% from June and more than double the figure for July last year. That is a noticeable mood shift from cautious optimism to bold execution among investor circles.

Regional dynamics

At the top of the list, Saudi Arabia pulled in $396.5 million across 16 deals, reaffirming its role as the region’s heavyweight. Its biggest push came from the quick-commerce platform Ninja, which secured $250 million to become the country’s latest unicorn.

The UAE followed closely with $359 million over 22 startups. Two-thirds of that total came from the $250 million Series A by UAE-based deeptech startup XPANCEO, which also reached unicorn territory.

The combined pull of these two markets was undeniable. Nearly all of the month’s largest raises took place within their borders, both of which now boast new unicorns. Their deep investor networks, policy support, and ability to host both local and global capital give them an edge that few other markets in the region can match. And in July, that dominance was on full display.

Beyond the leading duo, the rankings took an unexpected turn. Iraq jumped into third place with a single $15 million raise for InstaBank, shaking up the usual order. Morocco landed in fourth after Ora Technologies closed a $7.5 million round. Egypt, once a top-three fixture, fell to fifth with just $4 million across seven startups, its lowest monthly total in recent years.

Sectoral shift

This shifting geography is matched by a shift in sector priorities. For the first time in months, deeptech overtook fintech as the leading category, pulling in $250.3 million from just four deals. E-commerce matched that figure thanks to Ninja’s record-breaking raise.

Meanwhile, SaaS startups brought in $88.9 million, while fintech slipped to $61 million. The trend suggests investors are increasingly interested in intellectual property-heavy ventures and scalable consumer platforms over traditional financial services plays.

What the numbers mean

A closer look at the numbers reveals just how concentrated July’s funding was.

Much of July’s funding came from a small number of outsized deals. XPANCEO and Ninja, each with their $250 million raised, accounted for 56% of the month’s total.

Series A rounds were particularly strong, with three startups raising $267 million between them, while later-stage deals brought in $158 million. Early-stage companies raised $36 million across 26 transactions. Debt financing remained minimal at just 2% of the month’s total, showing that equity continues to dominate.

Business models also saw a shift in momentum. Consumer-facing companies were back in favour, with B2C startups collecting $534 million compared to $202.4 million for B2B ventures. The remainder went to D2C and hybrid models. This reversal from earlier in the year, when enterprise solutions held the spotlight, suggests that investors are once again betting on high-growth brands with mass-market appeal.

Gender gap

Yet even in a record month, equitable access to capital remains elusive. This is a noticeable gender gap that just keeps widening. Startups founded by men raised $774.5 million across 43 deals, accounting for 98.9% of total capital. Mixed-gender teams secured $5.8 million, while female-led ventures attracted just $3 million across eight deals.

Conclusion

With five months left in 2025, MENA startup funding is tracking well above last year’s pace, supported by large-scale transactions and steady early-stage activity. Saudi Arabia and the UAE remain the region’s primary investment hubs, but July’s rankings also highlighted the growing role of emerging markets such as Iraq and Morocco.

However, funding remains heavily concentrated in a small number of deals and among male-led ventures, indicating that while capital flows are strong, diversification in both deal distribution and founder representation is still limited. The coming months will test whether this momentum can be sustained and whether emerging markets and underrepresented founders can secure a greater share of the region’s expanding investment pool.